SEBI Extends Agriculture Commodity Trading Suspension

Sebi has extended the suspension of derivatives trading in seven agricultural commodities, including wheat and moong, until March 2026. This move aims to curb speculation and volatility in commodity markets that could impact food prices and inflation.

India's markets regulator, the Securities and Exchange Board of India (Sebi), has announced a further extension of the suspension on derivatives trading for seven key agricultural commodities. This action will continue until March 2026, marking a critical attempt to manage price volatility in the commodity markets.

The suspension affects commodities such as wheat, moong, non-basmati paddy, chana, crude palm oil, mustard seeds, and soybean, including their derivatives. Initially instated in December 2021, the ban has been enforced through a series of extensions, reflecting Sebi's ongoing commitment to stabilizing food prices.

Sebi's recent announcement allows for the squaring up of existing market positions but prevents any new futures trading for a year. This regulatory measure aims to mitigate excessive speculation and protect the agricultural sector from disruptive market forces.

(With inputs from agencies.)